2. Forward Looking Statements
In this presentation and in related comments by our management, our use
of the words “expect,” “anticipate,” “estimate,” “goal,” “target,” “believe,”
“improve,” “intend,” “potential,” “continue,” “designed,” “opportunity,” “risk,”
“may,” “would,” “could,” “should,” “project,” “projected,” “positioned” or
similar expressions is intended to identify forward-looking statements that
represent our current judgment about possible future events. We believe
these judgments are reasonable, but these statements are not guarantees
of any events or financial results, and our actual results may differ
materially due to a variety of important factors. The most recent reports on
SEC Forms 10-K, 10-Q and 8-K filed by us or GMAC provide information
about these and other factors, which may be revised or supplemented in
future reports to the SEC on those forms.
Unless specifically required by law, we assume no obligation to update or
revise these forward-looking statements to reflect new events or
circumstances.
1
4. Global Economic Outlook
• Experiencing worst financial/credit crisis in more than 70 years
• Financial market turmoil has spilled over to the broader global
economy, leading to significant uncertainty and volatility
– U.S. economic downturn, declining employment, falling real income
– Western Europe downturn, Central/Eastern Europe starting to slow
– Asia Pacific growth slowing
– Latin America facing increasing external pressures and risk of slowing
due to moderation of energy and commodity prices
• Coordinated global governmental measures welcomed and have had
some effect on thawing credit conditions, but have not yet stabilized
credit markets or affected real economy
3
5. Global Economic Outlook (Continued)
What We Know What We Don’t
• Credit markets frozen • Long-term consequences
of this crisis
• Consumer confidence at
historically low levels • Impact of consumer savings
and de-leveraging
• U.S. housing market has
not bottomed out • Business reactions to crisis
• Governments determined • Timing of recovery
to avoid systemic collapse
• Oil and commodity prices
falling
4
6. Global Industry Sales
• Six years of consecutive record global vehicle sales, rising 24% to
nearly 71M units in 2007
• Global sales peaked in January, now expect 2008 global sales below
69M (~3% lower than 2007 levels)
– Sales in North America and Western Europe below replacement rates,
similar to downturns in 1980’s and 1990’s
• Depressed sales levels likely to continue in 2009 without credit
market normalization
2008
(units, millions) 2004 2005 2006 2007 Q1 Q2 Q3 October
GMNA 20.3 20.6 20.2 19.6 18.8 17.7 16.4 13.9
U.S. 17.3 17.5 17.1 16.5 15.6 14.5 13.2 10.9
GME 20.8 21.1 21.9 23.1 23.9 22.8 21.6 20.0
Western Europe 16.8 16.9 17.1 17.2 17.1 16.2 15.3 14.4
GMLAAM 4.6 5.3 6.3 7.3 7.7 8.2 7.9 7.0
GMAP 17.2 18.1 19.3 20.7 22.7 22.3 20.4 21.6
Total 62.9 65.1 67.7 70.7 73.1 71.0 66.3 62.5
Note: Industry sales figures include medium- and heavy-duty trucks
5
7. Using Conservative Industry Outlook
• In light of ongoing global credit crisis, GM planning conservatively
– Expect U.S. industry volumes significantly below trend for several years
• Continuing to plan for gradually higher oil/energy cost environment
July 2008 November 2008
Liquidity Planning Liquidity Planning
Assumptions Assumptions
Key GMNA Planning 2008
Assumptions 2007 YTD (SAAR) 2008E 2009E 2009E 2010E
U.S. Light Industry (1) 16.2 13.8 14.0 14.0 11.7 12.7
Average Oil Price / Bbl $72 $110 $120-140 $130-150 $60-80 $100-120
Memo:
GME Industry 23.1 22.5 20.0
Western Europe 17.2 16.1 14.0
GMLAAM Industry 7.3 7.8 7.1
GMAP Industry 20.7 21.8 22.3
(1) Note: In millions of units; U.S. Light Industry excludes ~300K units per year of medium- and heavy-duty trucks.
Other regions shown include medium- and heavy-duty trucks.
6
8. Further Actions Announced Today
Additional Cash Savings
Through YE 2009
July 15th Announced Liquidity Actions
GMNA Structural Cost ~$2.5B On-Track
Salaried Employment Savings ~$1.5B Largely Complete
Capital Expenditure Reductions ~$1.5B On-Track
Working Capital Improvements ~$2.0B On-Track
UAW VEBA Deferrals ~$1.7B Complete
Dividend Suspension ~$0.8B Complete
Subtotal Operating & Other Actions ~$10B
Asset Sales ~$2-4B In Process
Capital Market Activities ~$2-3B Behind Schedule
Total Announced July 15 ~$15B
Further Actions Announced Today
Capital Expenditure Reductions ~$2.5B
GMNA Structural Cost Reductions ~$1.5B
Working Capital Improvements ~$0.5B
Further Salaried Actions ~$0.5B
Total Announced Today ~$5B
Total Liquidity Impact Through YE 2009 ~$20B
7
9. Capital Expenditure Reductions (~$2.5B)
July 15 Plan Additional Actions
~$1.5B Reduction
~$2.5B Reduction From July 15 Plan
From Prior Plan
• Delayed next gen. • CY 2009 capital spending reduced from
large pickup & SUV ~$7.2B to ~$4.8B through program and
programs capacity project deferrals
• Delayed V8 engine – Also results in engineering savings
development / • Protected Volt and Cruze and increased
capacity global spending on fuel economy
• Reductions in non- improvements
product spending
8
10. GMNA Structural Cost Reductions (~$1.5B)
July 15 Plan Additional Actions
~$2.5B Reduction
~$1.5B Reduction From July 15 Plan
From Prior Plan
• Pull-ahead production • Further revision to media/sales promotion
cessation; other shift & spending
line-rate reductions
• Reduced dealer network restructuring
• Increased percentage activities
of Tier 2 employees
• Production schedule revisions; further
• Reduced promotional & attrition programs as necessary
advertising spend
• Eliminate non-essential plant projects
• Engineering reductions
• Engineering reductions to match reduced
• Lower travel, non-core capital expenditures
IT project & consulting
services spending
9
11. Working Capital Improvements (~$0.5B)
July 15 Plan Additional Actions
~$2B Reduction
~$0.5B Reduction From July 15 Plan
From Prior Plan
• 70% precious metal • Additional inventory reductions
inventory reduction – Emphasis on components, buffer stocks
and finished goods
• Reduced export
inventory levels • Receivable and payable policies
– Indirect material purchases
• Lower work-in-
process & buffer
stock inventory levels
10
12. Salaried Employment Costs (~$0.5B)
July 15 Plan Additional Actions
>20% Reduction in ~$0.5B Reduction From July 15 Plan
Salaried Employment
Cash Costs • Increase savings in 2009 in U.S. and Canada
to nearly 30% (from more than 20%):
• Overachieved
– Total reduction of more than 7,000 salaried and
headcount reduction
contract employees (including July 15 actions)
targets
– Suspend additional employee benefits in U.S.
• Eliminated U.S. Post-65 and Canada (401K match)
retiree healthcare • Savings in 2009 in Western Europe as part of
• Eliminated base necessary, broad-based labor cost reduction
compensation increases initiatives
– GME to engage labor representatives in
• Elimination of executive necessary discussions
bonuses
11
13. Asset Sales & Capital Markets
Asset Sales Capital Market Activities
• HUMMER • Continuing credit crisis places
– Preparing to provide offering capital market financing efforts
materials to interested parties at risk
– Named CEO to build • Completed exchange in
management and lead next
September of $0.5B of Series D
stage of strategic review
senior convertible debentures
• Strasbourg (due June 2009) for equity
– Offering materials prepared and
provided to appropriate parties
• ACDelco
– Preparing to provide offering
materials to interested parties
12
14. Future Product Portfolio
Segment 2008 Q4 2009 CY 2010 CY
Chevrolet Camaro Coupe Saab 9-5 Sedan & Wagon
Cadillac CTS Wagon Chevrolet Cruze
Car
Buick LaCrosse Cadillac CTS Coupe
Chevrolet Volt
United
States
Cadillac SRX
Crossover Chevy Traverse Chevrolet Equinox Saab 9-4x
GMC Terrain
Truck Hummer H3T
Segment 2008 Q4 2009 CY 2010 CY
Buick Regal (C)
Buick LaCrosse (C) Chevrolet Spark HB (C & G)
OPEL Insignia Sedan (G) Chevrolet Cruze (C,G) Saab 9-5 Sedan & Wagon (G)
Germany
Car
China &
Cadillac CTS Wagon (C,G) Cadillac CTS Coupe (C,G)
OPEL Insignia HB & Wagon (G)
OPEL Astra HB (G)
Buick Enclave (C) Opel Meriva (G)
Crossover
Saab 9-4x (C,G)
C - China, G - Germany
13
15. Third Quarter Financial Highlights
• GAAP net loss of $(2.5)B, $(4.45) EPS including special items
of $1.7B
• Adjusted net loss of $(4.2)B, $(7.35) EPS, excluding special items
• Adjusted automotive earnings before tax (EBT) of $(2.8)B, down
$2.9B vs. Q3 2007 (excluding discontinued operations) on
significantly weaker results in GMNA and GME
• Adjusted GMAC results recognized by GM of $(1.2)B
• Adjusted automotive operating cash flow (OCF) of $(6.9)B
• Q3 gross automotive liquidity of $16.2B
14
16. Third Quarter Adjusted Results
2008 F/(U)
($ Millions) 2007 2008 2007
GMNA $ (298) $ (2,295) $ (1,997)
GME (136) (974) (838)
GMLAAM 374 514 140
GMAP 186 (6) (192)
Auto Eliminations (28) (57) (29)
Total Auto Earnings Before Tax 98 (2,818) (2,916)
GMAC (773) (1,225) (452)
Corp. Other (320) (84) 236
Total Earnings Before Tax/(Loss) (995) (4,127) (3,132)
Taxes (624) (68) 556
Total Net Income/(Loss) from Cont. Ops. (1,619) (4,195) (2,576)
Discontinued Ops. - Allison Transmission 45 - (45)
Total GM Net Income/(Loss) (1,574) (4,195) (2,621)
EPS from Cont. Ops $ (2.86) $ (7.35) $ (4.49)
EPS from Disc. Ops 0.08 - $ (0.08)
Total EPS (Basic) $ (2.78) $ (7.35) $ (4.57)
Total EPS (Diluted) $ (2.78) $ (7.35) $ (4.57)
Worldwide Production (000) 2,156 2,039 (117)
Global Market Share 13.7% 13.0% (0.7) p.p.
Refer to Supplemental Charts for reconciliation to GAAP figures 15
17. Third Quarter Adjustments to Income
$ Millions EPS
Adjusted Net Income / (Loss) (4,195) $ (7.35)
Pre-Tax Adjustments
UAW VEBA Curtailment 4,901
Salaried Health Care Plan Related (1,704)
Delphi Related (652)
Restructuring Related/Other (641)
GMAC Investment Impairment (251)
Total Adjustments 1,653
GAAP Net Income / (Loss) (2,542) $ (4.45)
Exclusion of special items useful for:
• Management to measure operations
• Comparisons between reporting periods
• Investors to measure and assess company’s core performance
16
18. UAW VEBA Curtailment
• Settlement Agreement became effective in September, requiring
remeasurement of UAW Hourly Medical and Mitigation Plan
obligations, as well as hourly pension plan
– Resulted in ~$13B reduction to UAW Hourly Medical Plan obligation,
reflected as actuarial gain in Other Comprehensive Income
– Also resulted in $2.7B increase in hourly pension plan obligation,
related to lifetime benefit increase, reflected as actuarial loss
• $4.9B curtailment gain related to accelerated recognition of net prior
service credits scheduled for amortization after January 1, 2010,
primarily resulting from 2005 Healthcare Agreement
17
19. Salaried Health Care Plan Related
• As part of operating actions outlined July 15th to improve liquidity,
GM eliminated Post-65 U.S. salaried retiree healthcare effective
January 1, 2009
– Pension benefit increase from U.S. salaried plan partially offsets
participant cost
• Consequently, U.S. salaried retiree healthcare and pension plans
were remeasured on July 1, 2008
• GM recorded $1.7B settlement loss related to plan participants aged
65 or over by January 1, 2009
Value of elimination of post-65 medical benefits $ 2.8 B
Value of increased pension benefit $(2.6)B
Pull-forward of unamortized actuarial losses $(1.9)B
Settlement Loss $(1.7)B
• For participants under 65, changes resulted in negative plan
amendment for U.S. salaried retiree healthcare and positive plan
amendment for U.S. salaried pension plans
18
20. Delphi Related
• GM-Delphi Settlement Agreements implemented in Q3
– GM paid $1.2B to Delphi related to accrued support payments
– 414(l) hourly pension transfer from Delphi to GM of $2.1B net liability
– GM received release from Delphi and $1.6B administrative claim
• Upon emergence, remainder of Delphi hourly pension plan for
participants with prior GM service to be transferred to GM, and GM to
receive preferred stock
• Q3 increase of $0.7B in Delphi reserve
– Reflects increased estimate of pension and other support obligations
under Settlement Agreements, offset by UAW VEBA curtailment gains
– Total of $11.7B in net Delphi-related charges taken to date
• Delphi filed modified Plan of Reorganization in October
– GM continues to work with Delphi and its stakeholders to facilitate
Delphi’s emergence from bankruptcy
19
21. Total Auto Adjusted EBT – Q3 2008 vs. Q3 2007
$ Billions – Continuing Operations Only Q3 Key Drivers
(1.4) Industry decline
2007 Earnings Before Tax $ 0.1
0.8 Inventory related
(0.3) Segment mix related
Volume (1.0) (0.1) Other
(1.1) Product line mix
Mix (1.5) (0.3) Model/option mix
(0.1) Fleet mix/other
Price 0.2 0.6 Lease reserve adj.
(0.4) Pricing/incentives
Cost Factors 0.4 0.4 Manufacturing/attrition
0.2 Pension/OPEB
Hedging / Exchange / Other (1.0) (0.2) Other
(1.4) Commodity/FX hedging
2008 Earnings Before Tax $ (2.8) 0.3 Exchange
0.1 Other
2007 excludes results from Allison Transmission, recorded as Discontinued Operations 20
22. Overview Of Commodity & FX Hedging
• GM uses passive hedging program to manage economic exposure to
market fluctuations in commodity prices and foreign currencies
• Hedge programs are rolling and generally vary by size of exposure,
depth of market and ability to forecast underlying exposure
– Generally, up to 50% of underlying exposure and tenor 12 to 36 months
Commodity & FX Derivative Mark-to-Market EBT Impact
Foreign Q3 2008
($ Billions) Exchange Commodities Total
GMNA 0.0 (1.1) (1.1)
GME 0.1 (0.2) (0.1)
(1)
GMAP (0.2) (0.0) (0.2)
GMLAAM (0.1) (0.0) (0.1)
Total EBT Impact (0.2) (1.3) (1.5)
Note: Data presented on absolute basis, not quarter-over-quarter
(1) Impact
at GMDAT reflected in GMAP results at 51% ownership level
21
23. GMNA Third Quarter Adjusted Results
2008
($ Millions) 2007 2008 F/(U) 2007
Revenue $26,607 $22,544 ($4,063)
Earnings Before Tax/(Loss) (298) (2,295) (1,997)
Earnings Before Tax Margin (1.1)% (10.2)% (9.1) p.p.
North America:
- Production Volume (000) 1,020 915 (105)
- GM Total Deliveries (000) 1,206 978 (228)
- Market Share 24.4% 23.4% (1.0) p.p.
United States:
- Industry SAAR (Mil.) 16.2 13.2 (3.0)
- Market Share 25.1% 24.3% (0.8) p.p.
- Retail/Fleet Mix - % Fleet 27.8% 29.5% (1.7) p.p.
- Dealer Inventory (000) 896 717 179
2007 excludes results from Allison Transmission, recorded as Discontinued Operations 22
24. GMNA Adjusted EBT – Q3 2008 vs. Q3 2007
$ Billions – Continuing Operations Only Q3 Key Drivers
2007 Earnings Before Tax $ (0.3) (1.3) Industry decline
0.8 Inventory related
(0.3) Segment mix related
Volume (0.8)
(1.0) Product line mix
(0.2) Model/option mix
Mix (1.3)
(0.1) Fleet mix/other
Price 0.3 0.6 Lease reserve adj.
(0.3) Pricing/incentives
Net Material (0.2) (0.2) Commodities
(0.1) Program majors
Pension / OPEB / Manufacturing 0.6 0.1 Material performance
0.4 Manufacturing/attrition
Hedging / Exchange / Other (0.6) 0.2 Pension/OPEB
(1.0) Commodity hedging
2008 Earnings Before Tax $ (2.3) 0.3 Exchange related
0.1 Other
2007 excludes results from Allison Transmission, recorded as Discontinued Operations 23
25. GME Third Quarter Adjusted Results
2008 F/(U)
($ Millions) 2007 2008 2007
Revenue $8,785 $7,482 ($1,303)
Earnings Before Tax/(Loss) (136) (974) (838)
Earnings Before Tax Margin (1.5)% (13.0)% (11.5) p.p.
Total Europe:
- Production Volume (000) 396 348 (48)
- Industry SAAR (Mil.) 23.5 21.6 (1.9)
- GM Total Deliveries (000) 523 459 (64)
- Market Share 9.5% 8.9% (0.6) p.p.
Germany:
- Industry SAAR (Mil.) 3.6 3.4 (0.2)
- Market Share 9.4% 8.4% (1.0) p.p.
UK:
- Industry SAAR (Mil.) 2.9 2.2 (0.7)
- Market Share 14.8% 14.9% 0.1 p.p.
- Memo: EUR/GBP exchange 0.68 0.80
Russia:
- Industry SAAR (Mil.) 2.8 3.0 0.2
- Market Share 9.1% 9.5% 0.4 p.p.
24
26. GME Adjusted EBT – Q3 2008 vs. Q3 2007
$ Billions – Continuing Operations Only Q3 Key Drivers
2007 Earnings Before Tax $ (0.1)
(0.2) Share performance
Volume/Mix (0.4) (0.1) Industry decline
(0.1) Model/option mix
Price (0.1)
Cost Factors 0.1
(0.3) Exchange related
Hedging / Exchange / Other (0.5) (0.1) Commodity/FX hedging
(0.1) All other
2008 Earnings Before Tax $ (1.0)
25
27. GMLAAM Third Quarter Adjusted Results
2008 F/(U)
($ Millions) 2007 2008 2007
Revenue $4,944 $5,681 $737
Earnings Before Tax/(Loss) 374 514 140
Earnings Before Tax Margin 7.6% 9.0% 1.4 p.p.
Total LAAM:
- Production Volume (000) 251 276 25
- Industry SAAR (Mil.) 7.3 7.9 0.6
- GM Total Deliveries (000) 330 342 12
- Market Share 17.4% 17.0% (0.4) p.p.
Brazil:
- Industry SAAR (Mil.) 2.6 3.1 0.5
- Market Share 20.9% 19.8% (1.1) p.p.
Argentina:
- Industry SAAR (Mil.) 0.6 0.7 0.1
- Market Share 17.0% 15.3% (1.7) p.p.
ANDEAN Markets
- Industry SAAR (Mil.) 1.1 0.8 (0.3)
- Market Share 29.6% 27.7% (1.9) p.p.
26
28. GMLAAM Adjusted EBT – Q3 2008 vs. Q3 2007
$ Billions – Continuing Operations Only Q3
2007 Earnings Before Tax $ 0.4
Volume/Mix 0.1
Price 0.1
Hedging / Exchange / Other (0.1)
2008 Earnings Before Tax $ 0.5
27
29. GMAP Third Quarter Adjusted Results
2008
($ Millions) 2007 2008 F/(U) 2007
Revenue $5,280 $4,766 $(514)
Pre-Tax Income/(Loss) 168 (115) (283)
China JVs Equity Income 86 50 (36)
Minority Interest (68) 59 127
Earnings Before Tax/(Loss) 186 (6) (192)
Earnings Before Tax Margin 3.5% (0.1)% (3.6) p.p.
Total Asia Pacific:
- Industry SAAR (Mil.) 21.0 20.4 (0.6)
- GM Total Deliveries (000) 327 336 9
- Market Share 6.5% 6.9% 0.4 p.p.
China:
- Industry SAAR (Mil.) 8.8 8.6 (0.2)
- Market Share 11.5% 12.2% 0.7 p.p.
Australia:
- Industry SAAR (Mil.) 1.0 1.0 0.0
- Market Share 14.2% 13.5% (0.7) p.p.
GM-DAT:
- Production (Complete Build Units) 193 181 (12)
28
30. GMAP Adjusted EBT – Q3 2008 vs. Q3 2007
$ Billions – Continuing Operations Only Q3 Key Drivers
2007 Earnings Before Tax $ 0.2
Volume/Mix (0.1)
Price (0.1)
(0.2) FX hedging
Hedging / Exchange / Other 0.0 0.2 Exchange / Other
2008 Earnings Before Tax $ (0.0)
29
31. GMAC Third Quarter Overview
• On a standalone basis, GMAC reported $(2.5)B net loss, a
deterioration of $0.9B vs. Q3 2007
• North America Auto Finance negatively impacted by increase in
provisions and weak economic conditions
– Residual values in Canada continue to be under pressure, leading to
additional lease impairments
• ResCap performance characterized by credit related losses and
limited revenue opportunities due to deterioration in domestic and
international housing markets
• Insurance operations remained profitable
• Adjusted EBT as realized by GM was a loss of $(1.2)B
– Includes 49% of Canada lease asset impairment taken by GMAC North
American Auto Finance
Note: For full description regarding GMAC and ResCap, please refer to GMAC’s November 5 earnings release and
corresponding press release, available on GMAC’s investor relations website.
30
32. GMAC Third Quarter Business Line Results
2008 F/(U)
($ Millions) 2007 2008 2007
Global Automotive Finance $ 554 $ (294) $ (848)
Insurance 117 97 (20)
Other* (6) (414) (408)
Sub-Total Net Income/(Loss) $ 665 $ (611) $ (1,276)
ResCap (2,261) (1,912) 349
Total Net Income/(Loss) $ (1,596) $ (2,523) $ (927)
* Includes GMAC Commercial Finance and equity interest in Capmark
31
33. GMAC Impact to GM
• Significant credit market deterioration impacts GMAC funding ability
– Effects being felt globally, as well as in U.S.
• Results in reduced GMAC lending capacity and commensurate
tightening of lending policies
– APR originations reduced 50-60%
– Reduced capital availability for lease originations
– Increased wholesale floor-plan financing rates
• GM has also responded with actions to facilitate retail customer
financing while allowing GMAC to manage to their capacity
– Cash-based incentives support standard rate GMAC financing and
enable dealers to pursue other financing sources
32
34. VEBA Accounting Post Q3
• Settlement Agreement became effective September 2008 and will be
accounted for as settlement instead of negative plan amendment
• Q4 2008 through Q4 2009: GM will continue to recognize service
costs for UAW Hourly Medical Plan participants and amortize
remaining net prior service credits
– Expect quarterly U.S. hourly OPEB expense to be in the range
of ~$0.2B lower than H1 2008 run-rate
– Largely the result of lower amortization of actuarial losses due to
Q3 2008 remeasurement
• January 1, 2010: Expect to account for the establishment and
funding of the NEW VEBA as a termination of our UAW Hourly
Medical Plan and Mitigation Plan and record a settlement gain / loss
– Magnitude of settlement gain/loss largely based on discount rate, which
cannot be reasonably estimated today
• Post January 1, 2010: Expect to recognize interest expense related
to the carrying value of remaining VEBA contribution obligations
33
35. Pension Funding
• GM’s U.S. pension funded status has declined due to recent
initiatives:
– 2008 Special Attrition Program for U.S. hourly employees
– Flat pension benefit in lieu of healthcare coverage for post-65 salaried
retirees effective January 2009
– Salaried retirement window program
– Delphi 414(L) transfer
• GM has also recognized additional pension liability following the
court approval of UAW Settlement Agreement
• After recognition of increased pension liability from these initiatives
and negative asset returns year-to-date, Hourly plan was $0.5B
underfunded, Salaried plan was overfunded, and plans were
overfunded on a combined basis
– Based on September 30, 2008 remeasurement of Hourly plan and July
1, 2008 remeasurement of Salaried plan
• GM does not expect any minimum funding requirements for both
Hourly and Salaried plans in the next 3-4 years
34
36. GM Liquidity Position
• Liquidity position of $16.2B at September 30, 2008
– Includes $0.3B of readily-available VEBA assets
– Represents decrease of $(4.8)B from prior quarter
• Additionally had access to about $0.4B of undrawn, committed U.S.
credit facilities at September 30, 2008
– Represents decrease of $(4.6)B from prior quarter, primarily driven by
secured revolver draw
• Net liquidity of $(27.1)B, $(7.6)B lower than prior quarter
– Debt balance in Q3 2008 at $43.3B
35
38. Automotive Cash Flow Summary
$ Billions Q3 2007 Q3 2008 F/(U) YTD 2008
GAAP Net Income (42.5) (2.5) 40.0 (21.3)
Adjustment to Exclude Financing/ Insurance Operations & Taxes * 39.8 1.4 (38.4) 6.7
Earnings Before Tax (Automotive & Corp/Other) ** (2.7) (1.1) 1.6 (14.6)
Depreciation & Amortization 2.0 1.9 (0.1) 6.0
Capital Expenditures (2.1) (1.4) 0.7 (5.5)
Change in Receivables, Payables & Inventory (1.1) (2.6) (1.5) (4.0)
Pension/OPEB expense (net of payments) 0.8 (3.9) (4.7) (1.9)
Accrued Expenses & Other 0.6 0.2 (0.4) 5.9
Adjusted Operating Cash Flow (2.5) (6.9) (4.4) (14.1)
Proceeds from Asset Sales (including Allison) 5.4 0.1 (5.3) 0.2
Cash Restructuring Costs (0.2) (0.5) (0.3) (1.0)
Delphi Cash Restructuring Costs - (1.2) (1.2) (1.2)
Special Cash Charges 5.2 (1.6) (6.8) (2.0)
Adjusted Operating Cash Flow after Special Cash Charges 2.7 (8.5) (11.2) (16.1)
Non-Operating Related
VEBA Withdrawals - 0.2 0.2 0.6
Dividends (0.1) - 0.1 (0.3)
Change in Debt 0.2 4.3 4.1 5.0
GMAC Asset Carve Out Flows 0.2 0.4 0.2 1.1
Change in ST VEBA - (0.2) (0.2) (0.3)
FX Translation Effect on Non-USD Cash Balances 0.1 (0.5) (0.6) (0.3)
Other (0.3) (0.5) (0.2) (0.8)
Total Non-Operating Related 0.1 3.7 3.6 5.0
Net Change in Cash and Cash-related 2.8 (4.8) (7.6) (11.1)
* Includes $39.1 billion Q3 2007 tax asset write-off
** Earnings before Tax from Continuing Operations on a GAAP basis
Refer to Supplemental Charts for reconciliation to GAAP figures 37
39. Key Cash Flow Variance Explanations
• Q3 Pension/OPEB expense (net of payments) mainly driven by one-time items
– UAW VEBA curtailment gain partially offset by salaried Post-65 OPEB settlement loss
$ Billions Q3 2007 Q3 2008 F/(U)
OPEB FAS 106 Expense (Normal Amoritzation) 0.4 0.3 (0.1)
UAW VEBA Curtailment - (4.9) (4.9)
Salaried Post-65 OPEB Settlement - 1.7 1.7
Subtotal - OPEB Expense 0.4 (2.9) (3.3)
OPEB Payments (0.9) (0.9) -
US Pension FAS 87 Expense / Other 1.3 (0.1) (1.4)
Pension / OPEB expense (net of payments) 0.8 (3.9) (4.7)
• Accrued Expenses and Other reflects timing of cash flows vs. accruals
– Sales Allowances are one of the main contributors to cash flow deterioration in Q3
$ Billions Q3'07 Q3'08 F/(U)
Restructuring Charges 0.3 0.6 0.3
Delphi Charge 0.4 0.7 0.3
Closed Plant - FAS112 0.2 - (0.2)
Subtotal Special Charges 0.9 1.3 0.4
Net Sales Allowance Accruals / (Payments) (0.6) (1.7) (1.1)
Net Policy & Warranty Accruals / (Payments) 0.2 (0.5) (0.7)
Financial Derivatives Mark-to-Market 0.1 1.5 1.4
Other - (0.4) (0.4)
Subtotal Other Operating (0.3) (1.1) (0.8)
Total Accrued Expenses & Other 0.6 0.2 (0.4)
38
40. Adjusted OCF Drivers For Q4
Q4 Adj. OCF
Adjusted Operating Cash Flow Drivers vs. Q3
• Sales Allowance Reserves
– ~$0.3B net outlays on dealer stock reduction; expect Q4 source of funds
– Working capital impact of incentive strategy change (cash vs. APR)
– $0.4B pre-payment to GMAC was one-time -- and unwinds over time
• Inventory / Working Capital
– Significant CYTD buildup of finished vehicle/in-transit inventories (~$2B)
– Expect reversal of inventory buildup with recently announced Q4
production cuts
• Timing of Interest Payments
– Q4 interest payments made in following quarter, resulting in lower cash
outflows vs. Q3
• Capital Expenditures
– Higher capital expenditure levels expected in Q4 due to timing of projects
39
41. Summary
• Liquidity is top priority of company
• Taking tough actions to generate and preserve liquidity
• Q3 results clearly reflect challenges facing U.S. and
global economies and difficult credit market conditions
• Q3 cash burn rate not indicative -- significant improvement
expected in Q4
• Challenging near-term liquidity situation
• Industry, GM and consumers all facing unprecedented challenges --
worst global financial and credit crisis in over 70 years
• Immediate federal funding is essential to help the U.S. auto industry
survive downturn
– U.S. auto industry is critical to U.S. economy
40
43. GMNA Vehicle Revenue Per Unit
Calendar Year Third Quarter
$23,000
$22,000
21,487 21,605
Net Revenue Memo
Gross Revenue less Q1 ’08 $21,575
$21,000 Sales Incentives Q2 ’08 $17,940
$20,000 20,195 20,391
20,189
19,417
19,636
19,425
$19,000 18,798
19,160
$18,000
$17,000
$16,000
CY '03 CY '04 CY '05 CY '06 CY '07 Q3 '04 Q3 '05 Q3 '06 Q3 '07 Q3 '08
Vehicle revenue per unit excludes items such as daily rental accounting impact, Service Parts, OnStar, other outside sales
Adjusted to remove Allison. Refer to Supplemental Charts for reconciliation to GAAP figures B-1
44. GMNA Adjusted EBT – YTD 2008 vs. YTD 2007
Key Drivers
$ Billions – Continuing Operations Only YTD
(2.4) Industry decline
2007 Earnings Before Tax $ (0.5) (1.1) Segment mix related
(0.2) Inventory related
(0.2) Other
Volume (3.9)
(2.1) Product line mix
(0.6) Model/option mix
Mix (2.9)
(0.2) Fleet mix/other
Price (1.9) (1.0) Pricing/incentives
(0.9) Lease reserve adj.
Net Material 0.1 0.8 Material performance
(0.4) Program majors
(0.3) Commodities
Pension / OPEB / Manufacturing 1.6
1.1 Manufacturing/attrition
Hedging / Exchange / Other 0.2 0.5 Pension/OPEB
0.6 Exchange related
2008 Earnings Before Tax $ (7.3) (0.3) Commodity hedging
(0.1) Other
2007 excludes results from Allison Transmission, recorded as Discontinued Operations B-2
45. Supplemental Charts
The following supplemental charts are provided to reconcile adjusted
financial data comprehended in the primary chart set with GAAP-
based data (per GM’s financial statements) and/or provide
clarification with regard to definition of non-GAAP terminology
S-0
46. Reconciliation to Adjusted Net Income / EPS Q3 2008
$ Millions, except for EPS
Auto Corp. Other
QTD September 30, 2008 GMNA GME GMLAAM GMAP Elims Total Auto GMAC Other Financing Total
Total Net Sales & Revenue 22,544 7,482 5,681 4,766 (2,970) 37,503 - - 438 37,941
Income (loss) before tax (395) (1,003) 514 (6) (57) (947) (1,476) (129) 78 (2,474)
Tax (expense) benefit - - - - - - - (68) - (68)
Net Income (loss) (395) (1,003) 514 (6) (57) (947) (1,476) (197) 78 (2,542)
EPS - Basic/Diluted ($4.45)
Pre-tax adjustments:
UAW VEBA Curtailment (3,684) - - - - (3,684) - (1,217) - (4,901)
Salaried Health Care Plan Related 1,172 - - - - 1,172 - 532 - 1,704
Delphi Related - - - - - - - 652 - 652
Restructuring Related/Other 612 29 - - - 641 - - - 641
GMAC Investment Impairment - - - - - - 251 - - 251
(1,900) 29 - - - (1,871) 251 (33) - (1,653)
Tax adjustments:
Other - - - - - - - - - -
Total Adjustments (1,900) 29 - - - (1,871) 251 (33) - (1,653)
Total Adjust. - Net Revenue - - - - - - - - - -
Adjusted Net Revenue 22,544 7,482 5,681 4,766 (2,970) 37,503 - - 438 37,941
Income (loss) before tax (2,295) (974) 514 (6) (57) (2,818) (1,225) (162) 78 (4,127)
Tax expense - - - - - - - (68) - (68)
Adjusted Net Income (loss) (2,295) (974) 514 (6) (57) (2,818) (1,225) (230) 78 (4,195)
Adjusted EPS - Basic/Diluted ($7.35)
S-1
47. Reconciliation to Adjusted Net Income / EPS Q3 2007
$ Millions, except for EPS
Auto Corp. Other
QTD September 30, 2007 GMNA GME GMLAAM GMAP Elims Total Auto GMAC Other Financing Total
Total Net Sales & Revenue 26,607 8,785 4,944 5,280 (2,614) 43,002 - - 700 43,702
Income (loss) before tax (1,766) (398) 374 186 (28) (1,632) (773) (1,031) 110 (3,326)
Tax (expense)/benefit - - - - - - - (39,113) (73) (39,186)
Net income (loss) from Cont. Ops. (1,766) (398) 374 186 (28) (1,632) (773) (40,144) 37 (42,512)
Net income for Disc. Ops. 45 - - - - 45 - - - 45
Gain on Sale of Disc Ops. 3,504 - - - - 3,504 - - - 3,504
Net Income (loss) 1,783 (398) 374 186 (28) 1,917 (773) (40,144) 37 (38,963)
EPS - Basic ($68.85)
EPS - Diluted ($68.85)
Pre-tax adjustments:
Pension prior service cost 1,310 - - - - 1,310 - 251 - 1,561
Restructuring related 158 262 - - - 420 - - - 420
Delphi reserve - - - - - - - 350 - 350
Other - - - - - - - - - -
1,468 262 - - - 1,730 - 601 - 2,331
Tax adjustments:
Deferred tax asset valuation allowance - - 38,439 123 38,562
Allison gain on sale (3,504) - - - - (3,504) - - - (3,504)
Total Adjustments (2,036) 262 - - - (1,774) - 39,040 123 37,389
Total Adjust. - Net Revenue - - - - - - - - - -
Adjusted Net Revenue 26,607 8,785 4,944 5,280 (2,614) 43,002 - - 700 43,702
Income (loss) before tax (298) (136) 374 186 (28) 98 (773) (430) 110 (995)
Tax (expense)/benefit - - - - - - - (674) 50 (624)
Net income (loss) for Cont. Ops. (298) (136) 374 186 (28) 98 (773) (1,104) 160 (1,619)
Net income for Disc. Ops. 45 - - - - 45 - - - 45
Adjusted Net Income (loss) (253) (136) 374 186 (28) 143 (773) (1,104) 160 (1,574)
Adjusted EPS - Basic ($2.78)
Adjusted EPS - Diluted ($2.78)
S-2
48. Reconciliation of GMNA Revenue Per Unit (Q3)
2004 Q3 2005 Q3 *2006 Q3
$ (000,000's) /per unit $ (000,000's) /per unit $ (000,000's) /per unit
GAAP 28,094 $ 22,279 26,917 $ 22,412 26,788 $ 24,199
add/(less): Vehicle Related Eliminations (820) $ (650) a (123) $ (102) a (386) $ (349) a
less: Non Vehicle Sales (2,840) (2,252) b (2,748) (2,288) b (3,595) $ (3,248) b
less: Other Income Items (730) (579) c (463) (386) c (451) $ (407) c
IR Chart 23,704 $ 18,798 23,583 $ 19,636 22,356 $ 20,195
*2007 Q3 2008 Q3
$ (000,000's) /per unit $ (000,000's) /per unit
GAAP 26,607 $ 24,936 22,544 $ 23,631
add/(less): Vehicle Related Eliminations 103 $ 97 a 18 $ 19 a
less: Non Vehicle Sales (3,218) (3,016) b (2,615) (2,741) b
less: Other Income Items (439) (411) c (494) (518) c
IR Chart 23,053 $ 21,605 19,453 20,391
*Note: Excludes revenue from Allison Transmission, classified as discontinued operations
a) Combination of allied sales (which are eliminated for GAAP but retained for managerial purposes), daily rental, DFC, upfitter, and other miscellaneous items.
b) Includes SPO parts, Powertrain engines, MSP, and Onstar service outside sales- excluded from managerial vehicle analysis
c) Includes Interest Income, Daily Rental Income, and GM Credit Card Income- excluded from managerial vehicle analysis
S-3
49. Reconciliation of GMNA Revenue Per Unit (CY)
CY '03 CY '04 CY '05
Revenue Revenue Revenue Revenue Revenue Revenue
$ (Millions) Per Unit $ (Millions) Per Unit $ (Millions) Per Unit
GAAP 120,566 $ 21,537 119,071 $ 21,736 111,376 $ 21,838
add/(less): Vehicle Related Eliminations (1,270) a (925) a (827) a
less: Non Vehicle Sales (10,063) b (9,175) b (9,246) b
less: Other Income Items (1,973) c (2,607) c (2,236) c
Managerial 107,260 $ 19,160 106,364 $ 19,417 99,067 $ 19,425
*CY '06 *CY '07
Revenue Revenue Revenue Revenue
$ (Millions) Per Unit $ (Millions) Per Unit
GAAP 116,653 $ 23,671 112,448 $ 25,061
add/(less): Vehicle Related Eliminations (1,674) a (1,343) a
less: Non Vehicle Sales (13,487) b (12,764) b
less: Other Income Items (2,003) c (1,929) c
Managerial 99,489 $ 20,189 96,412 21,487
*Note: Excludes revenue from Allison Transmission, classified as discontinued operations
a) Combination of allied sales (which are eliminated for GAAP but retained for managerial purposes), daily rental, DFC, upfitter, and other miscellaneous items.
b) Includes SPO parts, Powertrain engines, MSP, and Onstar service outside sales- excluded from managerial vehicle analysis
c) Includes Interest Income, Daily Rental Income, and GM Credit Card Income- excluded from managerial vehicle analysis
S-4
50. Reconciliation of Automotive & Corp/Other Cash Flow
Third Quarter and CYTD
General Motors Corporation
Automotive and Corp/Other
GAAP to Managerial Cash Flow reconciliation
$ Billions
Q3 2008 CYTD 2008 Q3 2007 CYTD 2007
Net Cash Provided By Operating Activities (GAAP) * (7.4) (10.5) (0.9) 2.0
Reclassifications to/ (from) U.S. GAAP
- Expenditures for PPE & Special Tools (1.4) (5.5) (2.1) (4.9)
- VEBA Withdrawls (0.2) (0.6) - -
- Cash Restructuring Costs 0.5 1.0 0.2 1.0
- Delphi - Cash Restructuring Costs 1.2 1.2 - 0.3
- Other 0.4 0.3 0.3 0.5
Total Reconciling Items 0.5 (3.6) (1.6) (3.1)
Adjusted Operating Cash Flow before Special Items (6.9) (14.1) (2.5) (1.1)
* Operating Cash Flow from Continuing Operations
S-5
